The Malaysian civil aviation authorities has officially declared the disappearance of MH370, which had been en route from Kuala Lumpur to Beijing on 8 March last year, an “accident” and that all 239 people aboard were presumed dead. The declaration meant the process of compensation could begin, said Department of Civil Aviation (DCA) director-general Azharuddin Abdul Rahman.
In a statement a day after the declaration was made, Life Insurance Association of Malaysia (LIAM) said that life insurance payouts totalling MYR6.8 million (US$4.62 million) have been made to the next-of-kin of passengers and crew members of the ill-fated flight.
“Life insurers have treated the accident as an extraordinary event and have waived all proof of death as early as March 2014 to process the claim payment. For life policies, the amount payable is based on the sum insured,” LIAM said, expressing its deepest sympathies to the family members and next-of-kin of those on board MH370.
A total of 185 policies were issued by 14 life insurance companies in Malaysia, LIAM said. The companies are AIA, Allianz Life Insurance Malaysia, AmMetLife Insurance (formerly known as AmLife Insurance), AXA AFFIN Life Insurance, Etiqa Insurance, Gibraltar BSN Life (formerly known as Uni.Asia Life Assurance), Great Eastern Life Assurance (M), Hong Leong Assurance, Manulife Insurance, MCIS Insurance (formerly known as MCIS Zurich Insurance), Prudential Assurance Malaysia, Sun Life Malaysia Assurance, Tokio Marine Life Insurance Malaysia and Zurich Insurance Malaysia.
On the non-life aspect though, with the plane’s whereabouts still unknown, some insurers may still dispute claims, reported Intelligent Insurer.
The Malaysian government is continuing its search, rescue and investigation efforts of MH370, with foreign counterparts, namely China, Australia as well as others, to bring closure to the unfortunate tragedy.